Fannie Mae RefiNow and Freddie Mac Refi Possible Enhancements
Newrez LLC "Newrez" Approved Correspondent Clients: Effective immediately, Newrez is aligning with the below enhancements mentioned in Fannie Mae Lender Letter LL-2021-10 and Freddie Mac Bulletin 2021-33.
Eligibility for RefiNow and Refi Possible have been expanded by:
- Allowing any reduction to the monthly mortgage payment instead of requiring a minimum reduction of $50. A decrease of at least 50 basis points in the interest rate is still required.
- Removing the $5,000 cap on the financing of closing costs, prepaids, and points.
Desktop Underwriter (DU) and Loan Product Advisor (LPA) will be updated at a future date. Until then, the feedback messages for the above may be disregarded.
At this time, the maximum loan seasoning requirement of ten (10) years and the 80% AMI income cap, remain in place.